Citizens’ Charter

Mission

• Maintaining the continued viability of NBFCs by ensuring that they function on healthy lines

• Developing an appropriate prudential framework for the NBFC Sector

• Affording indirect protection to their depositors by comprehensive regulation of deposit taking NBFCs

• Curbing un-authorized and fraudulent deposit acceptance by NBFCs

• Containment of systemic risk by comprehensive regulation of systemically important non-deposit taking NBFCs

• Ensuring protection to consumers of NBFC services by laying down of Fair Practices Code

Vision

• To have a strong, robust and vibrant NBFC sector, complementing the banking sector

An Overview

The Department of Non-Banking Supervision (DNBS) is entrusted with the responsibility of regulation and supervision of Non-Banking Financial Companies (NBFCs) under the regulatory - provisions contained under Chapter III B and C and Chapter V of the Reserve Bank of India Act, 1934.

The Regulatory and Supervisory Framework of the Reserve Bank provides for, among other things, registration of NBFCs, prudential regulation of various categories of NBFC, issue of directions on acceptance of deposits by NBFCs and surveillance of the sector through off-site and on-site supervision. Deposit taking NBFCs and Systemically Important Non-Deposit Accepting Companies are subjected to a greater degree of regulation and supervision. The focus of regulation and supervision is three fold, viz., a) depositor protection, b) consumer protection and c) financial stability.

The Reserve Bank has also been empowered under the RBI Act 1934 to take punitive action which includes cancellation of Certificate of Registration, issue of prohibitory orders from accepting deposits, filing criminal cases or winding up petitions under provisions of Companies Act in extreme cases.

Developmental activities of the Department

• Co-ordination with State Governments to pass State Legislations to curb unauthorized and fraudulent activities

• Conducting public awareness programmes, depositors' education, conducting workshops / seminars for trade and industry organizations

• Promoting Self-Regulatory Organization (SRO) for NBFC-MFI

• Conducting training programmes for personnel of NBFCs, State Governments, State Police and auditors of NBFCs

• Interacting with co-regulators viz., SEBI, IRDA, and Government of India and State Governments for greater coordination on related issues.

The current focus of the Department is to

• Identify and review regulatory framework to bridge gaps and align regulations with other financial intermediaries, wherever appropriate;

• Identify and monitor areas of systemic risks and unregulated shadow banking activities from the financial stability perspective;

• Supervise the regulated entities through Off-Site Reporting, On-Site Inspections and Market Intelligence;

• Coordinate with other financial sector regulators and enforcement agencies to check unauthorized financial activities;

• Conduct public awareness campaigns on Non-Banking Financial Companies and unauthorized acceptance of deposits through press advertisements, participation in fairs / workshops/seminars;

• Streamline the sector to ensure that only serious players occupy the NBFC space

• Enhance disclosure and transparency in the sector

The services provided along with the prescribed time – limits by the Department and the timelines for approvals are as under:

All Notifications/ Circulars /Press Releases issued by the Department related with the Non-Banking Financial Companies (NBFCs) are placed on the Banks’ website www.rbi.org.in → Notifications or www.rbi.org.in → Sitemap→ NBFCs→ NBFC Notifications. In addition, Master Circulars on the regulatory and supervisory framework are updated and placed on July 1 each year on the website Notifications → Master Circulars → Non-Banking Supervision or www.rbi.org.in→ Notifications → Master Circulars → Non-Banking Supervision. FAQs have also been placed on the website for the information of the public on the website www.rbi.org.in→ FAQs→ NBFCs. The check list for documents required for registration with the Bank as an NBFC is placed on the website at www.rbi.org.in→ Forms→ NBFCs

The list of NBFCs, including Securitisation Companies and Reconstruction Companies registered with Reserve Bank of India, as also the lists of rejected, cancelled and vanishing companies have been hosted on the website of RBI (www.rbi.org.in→ sitemap→ NBFCs).

(K.K.Vohra)
Principal Chief General Manager

Reserve Bank of India
Department of Non-Banking Supervision
Central Office
Mumbai- 400005

Organizational set-up

The Central Office of the Department of Non-Banking Supervision, which is situated in Mumbai, is entrusted with laying down the policies, regulatory and supervisory framework for Non-Banking Financial Companies as per the mandate under RBI Act, 1934. Any communication to the Central Office can be addressed to

Shri Sathyan David
Chief General Manager
Reserve Bank of India
Department of Non-Banking Supervision
Central Office
World Trade Centre, Centre 1, 2nd Floor
Cuffe Parade, Colaba
Mumbai- 400005

Regional Offices

The Department has 16 Regional Offices all over India having jurisdiction over the NBFCs registered with the Registrar of Companies of their respective states. The contact details and jurisdiction of these offices are:

Application Tracking System

An Application Tracking System (ATS) has been developed for members of the public to submit any individual application to RBI and keep track of the status of its disposal thereafter. Applicant/ complainant can access the ATS, which is hosted on the public website of the Reserve Bank of India (RBI), www.rbi.org.in under the link ‘Application Tracking System’. Further, the COSMOS Application also provides a tracking mechanism for the purpose of tracking the Application for Certificate of Registration.

Complaint Redressal

The Department attaches utmost importance to complaints/grievances of customer of NBFCs. Citizens may lodge their complaints/grievances, including complaints pertaining to non-repayment of deposits with the Department of Non-Banking Supervision, in the nearest Regional Office of the Reserve Bank. Depositors can also approach Company Law Board (CLB), or the State Police under the Protection of Interest of Depositor’s Act, if passed by the concerned State Governments or file a complaint with the Consumer Forum or file a civil suit in a Court of law to recover the deposits. The Company Law Board has been authorized under the RBI Act 1934 to adjudicate the claims of depositors with specific powers to direct the defaulting companies to make repayments.The details of addresses and territorial jurisdiction of the bench officers of CLB are as under:

For quick redressal of grievances, the customers may forward their grievances to the respective regulator. An illustrative list of activities and the concerned regulators is available in Annex I in the FAQs available at www.rbi.org.in→ FAQs → NBFCs → All You Wanted to Know About NBFCs.

However, as a proactive consumer protection measure, the Department of Non-Banking Supervision will also accept any other complaints/grievances relating to financial sector, and will arrange to forward such complaints/grievances to the concerned financial sector regulator, if the same is out of its own purview, under advice to the complainant. Citizens may also seek information/ clarifications on issues relating to regulation of NBFCs on-line through the mail.